Stock Jobs Stock Trading Strategies

Question 1

What is a 'buy and hold' investment strategy?

Accepted Answer

Purchasing securities and holding them long-term regardless of market fluctuations

Answer

Buying stocks daily and selling at end of day

Answer

Buying only during market downturns

Answer

Holding cash and buying during crashes only

Question 2

What does 'dollar-cost averaging' mean in stock investing?

Accepted Answer

Investing a fixed dollar amount at regular intervals regardless of price

Answer

Investing only when stock prices are at their lowest

Answer

Averaging the cost of multiple brokers' fees

Answer

Buying stocks only in round-dollar increments

Question 3

What is a 'contrarian' investment strategy?

Accepted Answer

Investing against prevailing market sentiment

Answer

Following the majority of market trends

Answer

Using only technical analysis

Answer

Investing exclusively in foreign markets

Question 4

What is 'swing trading' in stock markets?

Accepted Answer

Holding positions for days to weeks to capture short-term price moves

Answer

Trading only on market open and close

Answer

Trading only dividend-paying stocks

Answer

Rotating between sectors annually

Question 5

What is a 'momentum' trading strategy?

Accepted Answer

Buying securities that have shown upward price trends, expecting continuation

Answer

Investing in stocks with declining prices expecting a reversal

Answer

Trading only during earnings season

Answer

Focusing on low-volume stocks

Question 6

What does 'scalping' refer to in stock trading?

Accepted Answer

Making many small trades throughout the day to capture tiny price differences

Answer

Profiting from large price moves over months

Answer

Buying undervalued stocks in bulk

Answer

Trading only during pre-market hours